Standard Chartered’s Zodia Custody in Talks to Raise $50 Million for Crypto Expansion

Zodia Custody, the Standard Chartered-backed crypto storage provider, is looking to raise $50 million to broaden its geographic reach and enhance its crypto custody services, according to a Monday report by Bloomberg.

Standard Chartered’s crypto storage business Zodia Custody is in talks to $50 million of fresh capital, with plans to assemble a more diverse array of backers https://t.co/u1yELb3V2A

— Bloomberg Crypto (@crypto) November 4, 2024

CEO Julian Sawyer revealed that Zodia Custody is seeking new investor backing to increase its reach and diversify its crypto custody offerings.

Growing Needs and Competition in Crypto Custody

The custodian, with the support of crypto-focused advisory firm Architect Partners, is seeking funding sources from companies in the payments and tokenization sectors to diversify its investor base.

Backed by firms like National Australia Bank and Northern Trust, Zodia Custody aims to meet rising industry demands for robust digital asset protection.

As established financial institutions and crypto-native companies enter the market, demand for secure digital asset storage solutions has intensified.

The company’s expansion plan reflects a response to growing security needs within the crypto industry, which comes with increasing competition among custodians.

Based on the report, traditional custodians like Bank of New York Mellon, State Street, and Citigroup have shown interest in crypto custody in recent years, following moves by digital-focused firms such as Coinbase and Anchorage Digital.

With billions lost to criminal activity, digital assets remain a frequent target for cyber threats.

To address these security concerns, Zodia looks to strengthen its infrastructure and broaden its service range to meet institutional standards.

The company’s prior funding round in 2023, led by SBI Holdings, raised $36 million.

This funding has fueled Zodia’s service expansion and geographic growth, setting the stage for its ongoing push in the competitive crypto custody sector.

Zodia Markets Acquires Elwood’s OTC Business

Zodia Markets, a subsidiary of Zodia Custody, acquired Elwood Capital Management Ltd’s (“ECML”) Digital Asset over-the-counter (OTC) trading business on July 17.

“Building on our exceptional growth in the first half of the year, we are well-positioned to further capitalise on the global institutional demand for digital asset solutions,” said Zodia Markets co-founder and CEO Usman Ahmad.